The global push toward electric vehicles has brought one component to centre stage: the EV battery packs. As automakers ramp up production and purchasers demand longer range, faster charging, and improved safety, the environment around electric vehicle (EV) battery packs is evolving rapidly. Let’s take a look at where things are now, why it matters, and what to watch for with electric vehicle battery packs.
The current state: what EV battery packs are
At the core of any battery-electric vehicle is the EV battery pack — the large module that stores electrical energy and powers the motor. These packs typically consist of numerous battery cells grouped into modules, which then combine into a pack. The pack also houses sensors, relays, a battery management system (BMS) and often a thermal management system.
Most electric vehicles today use lithium-ion chemistry for their EV battery packs, due to high energy density, good power-to-weight ratio, relatively good cycle life and efficiency. In India and in many global markets, two chemistries dominate: lithium iron phosphate (LFP) and nickel-manganese-cobalt (NMC) for EV battery packs.
In terms of size, many EV battery packs in full electric vehicles offer between about 20 kWh and 130 kWh of usable energy, depending on vehicle size and design.
Why EV battery packs matter
EV battery packs are arguably the biggest cost component of an electric vehicle and a key determinant of its range, performance, safety and sustainability. When the cost of EV battery packs drops, the entire cost of electric vehicles comes down—making them more accessible and increasing adoption.
According to recent data, demand for batteries for electric vehicles reached more than 750 GWh in 2023, driven almost entirely by passenger battery electric vehicles. At the same time, the market for materials tied to EV battery cell and pack materials is estimated at US$21.1 billion in 2024 and projected to reach US$48.7 billion by 2030. Clearly, EV battery packs are not just a technical component — they are a strategic piece of the automotive, energy and materials ecosystem.
Key trends in EV battery packs
1. Rapid price drops
One of the most promising signals is that EV battery pack prices have fallen significantly. For example, average pack prices dropped about 20 % in 2024 to around US$115 per kWh. This reduction opens the path toward the oft-cited US$100/kWh threshold for cost parity between EVs and internal-combustion vehicles.
2. Chemistry diversification and next-gen tech
While LFP and NMC dominate now, next generation EV battery packs are beginning to glimpse technologies like solid-state batteries, sodium-ion chemistry, and advanced recycling. For example, sodium-ion batteries promise lower cost, less reliance on critical materials and better safety in EV battery packs.
3. Supply-chain and materials leverage
The supply chain for EV battery packs — including raw materials like lithium, cobalt, nickel, graphite — is becoming increasingly important. As demand for EV battery packs grows, so does the demand for those materials: lithium demand for batteries reached ~140 kt in 2023, up significantly. Also manufacturers are focusing on recycling, second-life and pack reuse as part of a sustainable strategy for EV battery packs.
4. Safety, modular design and thermal management
Because EV battery packs house high-voltage energy, issues around thermal runaway, safety, cooling/heating, monitoring become crucial. The BMS and thermal management system within an EV battery pack monitor temperature, voltage, current and protect the pack during charging/discharging. Moreover, modular pack design improves serviceability and second-life prospects.
Challenges ahead for EV battery packs
Despite advances, EV battery packs still face hurdles:
Materials limitations: The increase in demand for EV battery packs strains the supply of materials (i.e. lithium, cobalt, nickel and graphite). These materials are difficult to secure sustainably.
Recycling and second-life: Once EV batteries reach the end of their vehicle life cycle, reuse and recycling are not as mature as we would like.
Continued cost reductions: Although prices have fallen, further cost reductions are required in EV battery packs to get EVs into the mainstream globally.
Novel chemistries readiness: Emerging chemistry-based EV battery packs (solid-state and sodium-ion) remain unproven and new manufacturing approaches must be scaled-up, and pass safety and cost evaluations.
Infrastructure and thermal/pack integration: Ensuring EV battery packs integrate well with vehicle systems, chargers, thermal management and vehicle lifetime performance is complex.
Implications for India and global markets
In India, the push for localization of EV manufacturing means that EV battery packs will be a key part of value-chain build-out. For example, domestic manufacturers and policy frameworks will need to account for EV battery pack production, assembly, recycling and service. With global EV battery pack prices dropping and local material supply being emphasised, India could benefit by investing in EV battery pack manufacturing and support services.
Globally, as more affordable EVs emerge, thanks to cheaper EV battery packs, adoption rates will accelerate — helping shift the automotive sector and reducing emissions. Also, smarter second-life use of EV battery packs (e.g., in stationary storage) could provide additional value and improve lifecycle economics.
Looking ahead: what to watch in EV battery packs
Pack price under US$100/kWh: The milestone where EV battery packs cost below this mark could trigger mass-market EV affordability.
Commercialisation of next-gen chemistries: When solid-state or sodium-ion EV battery packs reach mass production, the impact could be game-changing.
Second Life and Recycling Market: The manner in which EV battery packs are reused in grid energy storage, home storage or resold will be important to sustainability.
Pack Safety and Thermal Resilience: Pack designs that address heat issues, ensure integrity of life of product, and embeds charging infrastructure will also be a consideration.
Localization and Supply-chain Resiliency: Countries building importance to the value chain of EV battery packs – from materials to assembly to recycling – will gain strategic advantages.
Conclusion
The era of the EV battery pack is upon us. These are not just components; they are the enablers of the electric vehicle revolution, the pivot for cost, range, safety, sustainability and vehicle design. Due to rapidly falling prices, increasing demand, and emerging technology, EV battery packs are redefining what is possible when it comes to mobility and energy in the future. Yet with all of this promise, there are still hurdles to clear: raw materials, recycling, scaling new technologies and building systems to support them must keep pace. For consumers, manufacturers, regulators and investors, keeping an eye on EV battery packs means keeping an eye on the center of the next wave of automotive change.
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